The Central Bank of Nigeria has addressed concerns regarding the old series of N200, N500, and N1000 banknotes, stating that they will not cease to be legal tender on December 31, 2024.
This follows recent discussions at various forums suggesting that the CBN plans to withdraw the old banknotes by the end of December.
In a statement issued on Thursday and signed by the Acting Director of Corporate Communications at the CBN, Mrs. Sidi Ali Hakama, the apex bank strongly denied the claims, stating that they are false and intended to disrupt the country’s payment system.
The statement partly read, “The attention of the Central Bank of Nigeria (CBN) has been drawn to discussions at different fora suggesting that the series of the N200, N500 and N1000 banknotes shall cease to be legal tender on December 31, 2024. We wish to state categorically that such claims are false and calculated to disrupt the country’s payment system.
“For avoidance of doubt, the order of the Supreme Court of Nigeria on Wednesday, November 29, 2023, granting the prayer of the Attorney-General of the Federation and the Minister of Justice to extend the use of the old Naira banknotes ad infinitum subsist.
“Similarly, the CBN’S directive to all its branches to continue to issue and accept all denominations of Nigerian banknotes, old and redesigned, to and from Deposit Money Banks (DMBs) remains in force.”
Recall that the Supreme Court ruled that the old series of N200, N500, and N1000 banknotes will remain legal tender alongside the redesigned versions.
The apex bank stated that all banknotes issued by the CBN will continue to be legal tender indefinitely.
“We therefore, advise members of the public to disregard the suggestions that the said series of banknotes will cease to be legal tender on December 31, 2024. We urge Nigerians to continue to accept all Naira banknotes (old or redesigned) for their day-to-day transactions and handle them with utmost care to safeguard and protect their lifecycle.
“Furthermore, the general public is encouraged to embrace alternative modes of payments, echannels in order to reduce pressure on the use of physical cash.”the statement added.
On October 26, 2022, the former Governor of the Central Bank of Nigeria, Mr. Godwin Emefiele, announced plans to redesign the highest denominations of the Naira—N200, N500, and N1000 notes—with a deadline of January 31, 2023, for depositing old notes in banks in exchange for new ones.
The CBN stated that the new notes were intended to curb corruption and currency fraud, combat the rising issue of kidnappings for ransom, reduce inflation, and address the excessive amount of money in circulation.
However, the deadline was later extended, leading to a cash scarcity that significantly impacted many Nigerians between March and April 2023.
The Supreme Court ruling later in the year resolved the ongoing confusion regarding the matter, allowing Nigerians to continue using both the old and new notes to this day.
